Reliance Communications said on Tuesday it had sought another 60 days for repayment of Rs 5.50 billion to unsecured creditor Ericsson, as its spectrum sale could not be completed due to factors beyond its control.
“Ericsson India Private Limited (‘Ericsson’), an unsecured creditor of RCOM, is understood to have filed a Contempt Petition on October 1, 2018, in the Hon’ble Supreme Court in relation to the settlement amount of Rs 5.50 billion to be paid by RCom. This filing is unwarranted,” Reliance Communications (RCom) told the BSE.
RCom maintained it had already filed an application on September 28 in the apex court seeking extension of time for making payment to the Swedish telecom equipment maker, by 60 days. That matter is slated to be heard on October 4, it pointed out.
"The extension has been sought purely due to the fact that, as approved by 38 secured lenders, and as per RCOM’s undertaking, Ericsson is to be paid from the sales proceeds of spectrum being traded by RCom, and such sale could not be completed as yet owing to factors beyond the control of RCOM,” it stated.
The Anil Ambani led company noted that it filed an application for approval of the said sale with the Department of Telecommunications (DoT) on August 7, 2018.
"However, DoT unjustly sought securitization of alleged demands (which are wholly disputed) for Spectrum Usage Charges amounting to Rs 29 billion. This demand of DoT has been challenged by RCom before the Hon'ble Telecom Disputes Settlement and Appellate Tribunal (‘TDSAT')," said RCom.
A number of hearings have taken place in the matter since August 28, 2018, and the telecom tribunal announced interim relief on October 1, although the copy of the order passed by TDSAT is still awaited and expected shortly, RCom said.
“RCOM, as duty bound, shall duly abide by such directions and orders as may be passed by the Hon'ble Supreme Court upon the matter being heard on October 4, 2018," it said.